The Vanguard Target Retirement 2025 Fund (VTTVX) says it has approx. 65% of assets in stock and 35% in bonds and had a YTD return of 12.46% (As of 8/30/19)
The Vanguard Target Retirement 2055 Fund (VFFVX) says it has approx. 90% of assets in stock and 10% in bonds and had a YTD return of 13.69% (As of 8/30/19)
Thats a difference of only 1.23%. With the stock market doing as well as it is, I would have assumed that having 25% more in stocks would make the difference in the returns much larger.
How is the fund with a much larger percentage in bonds able to keep up with the other fund?
My only thought is perhaps the bonds were purchased 20+ years ago and are giving much higher rate. Would that even make sense?